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tv   MONEY With Melissa Francis  FOX Business  April 9, 2013 5:00pm-6:00pm EDT

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seen last few weeks where defensive sectors were leading the gains. does the shift to economically sensitive groups suggest even more gains ahead for the market? fed minutes tomorrow. we have to keep an eye out for those. liz: they do tend to move the markets. don't miss fox business all day. guess what? "money" with medical list is next. >> i'm melissa francis, here is made money today. pill ackman and pershing square. kpmg resigned as auditor and inside provided insider information about herbalife. the news sank herbalife shares 4% but ackman is smiling because he sold 20 million shares herbalife short. called the company an illegal pyramid scheme. guess who is not making money today? also bill ackman! his fund is jcpenney's largest shareholders. jcpenney shares tanked 12% in the wake of ron johnson's ouster.
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ackman's fund owns 39 million shares of jcpenney. it lost nearly $76 million on that stock today. rick pittino making money on last night's win the louisville basketball coach gets $150,000 bonus for beating michigan in the national championship game. it pushed his compensation for the season above $6 million. good for him. even when they say it's not it is always about money. melissa: more on the power of money. a new insider trading scandal as partner of the accounting firm kpmg is accused of leaking inside information about the controversial supplement company herbalife which kpmg was auditing. herbalife has been the target of quite a lot of criticism lately with
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activist investor bill ackman going so far as to call it a pyramid scheme. it was kpmg's job to make sure they were on the up and up. with this latest twist you have to wonder who you can trust when it comes to power and money. we're joined by george shultz and fox business's adam shapiro. george, start with that question of the auditor? >> who can you trust? i think no one these days. melissa: that's what it feels like. that's what investors out there are saying. is that really the truth or is this one bad apple? >> i think with kpmg i think it is one bad apple. kpmg put out a release, this is one of 22,000 partners. melissa: 22,000 employees or 22,000 partners. >> 22,000 partners. one person, bad apple. sometimes things like this can happen. person resigned. kpmg withdraw their opinion but still a real business under it all. temporary setback. melissa: adam? >> i agree a lot of investors question who do you trust.
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this is another message wall street will ignore. it has a real public relations problem. you and me, people put money in 401(k)s, do not trust the people, whether auditors or credit rating agencies or firms actually handling our transaction. this is huge and they're going to kill the goose that lays the golden egg if they don't have comeuppance. melissa: what is so tough about this, this was already a war going on, a battle of titans between bill ackman and carl icahn, fighting on either side of whether this company is for real, you know. >> that's right. that's what the opportunity is here. this is a real company behind it all. melissa: you think so? >> i think so. i read carefully their releases and their presentation after ackman's presentation. are's fate it, i think way to build trust through yourself and your own portfolio. you have to have die percentification. you have to be careful using leverage. cut losses quickly and stay
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away from derivatives. things can and do go wrong. that is the nature of investing and here is example of it. >> i'm not talking about the people in and out of the markets in a split second. people feel this game is rigged against them. herbalife, april 23rd last year, all time hi 73 bucks. when ackman announced a short it fell to $24.2. year-to-date, up 4%. it might be a legitimate company. ackman wants them investigated. if you're mom-and-pop. maybe you use the products, maybe you like them, maybe you will buy this stock. if you're looking at this from outside, you have got billionaires fighting among themselves, ackman and icahn. you got them fighting among themselves. you have an auditor who may or may not be complicit. by the way, "wall street journal" is reporting third party involved getting insider information had nothing to do with the public battle. how do you not look at that
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and say why would i engage in that? melissa: it is a big turnoff for all regular people, george. this shows you when you see all this power fighting over money, does the average guy have a chance? whether you have a inside guy at kpmg? whether you have two billionaire titans battling each other who is looking out for the regular guy? ostensibly all three of those people are supposed to represent shareholder interests. >> finra. i'm joking. >> for the professional investor really comes in. the professional investor is experienced with these kind of things and these kinds of companies. let's face it --. melissa: trust a professional? that takeaway from all this, trust a professional? people watching this don't think the professionals know what they're doing. >> with carl icahn and bill ackman i can tell you a couple things about herbalife. the company is relatively cheap. not screamingly cheap, trading 7.7 times price-to-earnings ratio. it is worth five times ebitda based on current
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market price. to me that means it is kind of cheap. it has a strong dal balance sheet. returned $1.9 billion to shareholders since 2007. it is has active shareholder buyback program. the company is cheap. melissa: can they keep all the revenue going? that is the essential question. >> they can keep the revenue going, mom-and-pop will not look at that what they look at kpmg caught in a scandal. think arthur andersen, enron, not related in any way. you think about that you think about two previous kpmg partners selling fraudulent tax shelters. melissa: but if you get out and stay away you missed this whole move up in the market. we all know the way the fed is playing it right now. the only way people are making money is the stock market. wage growth is nothing. housing value is nothing. if you're not in the market that doesn't work either. hang on one second, guys. we'll pause for a second and talk about something else and bring both of you back. i want to turn to the
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market. that is what we were just talking about. bring in a few more guests to join us, stocks have been on abs absolute tear lately. with the dow posting new all-time high today, even friday's terrible jobs report couldn't slow bulls down. but market watchers are saying not so fast. the market is due for a major correction. investors maybe they should count their winnings. here to help you make money, that is what we're about, let's get to it. we have a chief market strategist with elliott wave international and we have the editor of game-changer.com. hillary, you heard the discussion. at the end we're talking about do investors need to be in the market to make money. do you think it is still going up from here? are you a bull or a bear? >> melissa, absolutely. we have at least another 12 months of a bull market ahead of us and there are a number of reasons why. of course the u.s. is seen as flight to safety. our equity market and treasury market with 10-year yield at only 1.75%. the equity market, stocks
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are the place to be. the fact that kpmg stood up to the plate today and gave transparency and said look, we're resigning these audits and this is what happened and we had this rogue senior partner, it is very important message and it should be for the rest of the world which is we don't put up with insider trading. when we find out this is going on, we let the world know. so the stock market is the place to be and there are some great things ahead of us. melissa: that is the bullish case. steve, the flip side of the coin the market has been on a tear. maybe this is the first signs of the crack in the wall here. that, you know, this is the beginning of earnings season and maybe a lot of companies are going to talk about their guidance going forward. that things have slowed a little bit. maybe this is the time for investors to actually get out. steve, what do you think? >> absolutely. i think the operative word has within. not only has the market been on a tear but up for the past four years since march of 2009. and the view there is no
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alternative investment to us is simply a state of mind. it is not an investment philosophy. what we like to deal is peel the onion back and look at the top layer and look at the internal condition of market. volume has been contracting all the way up. you have what we view as five wave pattern. we use elliott wave model of optimism and pessimism. melissa: what does that mean in english. >> that means the market moves in waves of optimism and pessimism. we have five moves since november. once that pattern is complete by definition the market will go down. melissa: steve, what is the alternative. you want investors to get in bonds? hillary was making fun of that. >> on relative basis you could argue for stocks but an absolute basis both are overvalued. >> that is actually the not case. melissa: let hillary talk, then you respond. >> stock market based on price earnings multiple is trading quite inexpensively in terms of traditional p-e multiples.
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plus, we had a bull market from 1982 to 2000. it is people who say the bear is coming, the market is falling, that is what keeps so many investors on the sidelines until they finally give up. what i hope that investors aren't going to start piling 12 months from now, 18 months from now. now the is time. melissa: what do you think, george. >> i can't agree more with hillary. lots of strong balance sheets. credit markets are wide open, financing m&a and other types of activity. a lot of cash still on the sidelines. plus around the world we're seeing worldwide monetary accommodation not just by the federal reserve but also by japan and europe. you're seeing it in switzerland. it is unpress dented how much cash is out there. melissa: adam, you hear this all the time? >> mom-and-pop, people like me, you have 20, 25 years to invest. you can recover from downturn. now is not the time to pull out. yes, you should be in equities. keep in mind a lot of people are looking at the last 10 years prior to six months
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ago and they didn't make anything. they're looking at that and they get very afraid. people are piling in equities worldwide. first two months of this year we saw $60 billion put back into equities. you have to ask the question how long do you have to go? someone like me i should be in equitying clearly. someone 65, i think this is beginning after long-term trend. melissa: hillary. >> we have a long way to go. ratio of five to one investors still piling into treasury and traditional corporate bond market. that is not even including junk bonds for example. so many companies you still have the opportunity to invest. if you don't want to go for the high-flyers hitting new 52-week highs, you can take a flyer and invest in u.s. steel symbol s. melissa: give knee that symbol, hillary. >> u.s. steel. symbol is x or an iron or company, vale. these are companies that will ride the wave of global economic recovery. melissa: steve, give you the last word because you're the only bear out here right now. >> that's right. i am. that should tell you
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something. everyone is on one side of the ledger here. speaking of 52-week highs, they peaked out several months ago and making lower highs as the stock market has been making higher highs. that is coincident with usually a top sign in the market. we think you should get out right now. melissa: great discussion. thanks to all four of you. you were fantastic. time for today's fuel gauge report. first solar making huge money. they blew away analyst estimates. stronger demand for its solar power projects behind the outlook. shares rocketed 45% on the news. it is shining. plus a new hampshire jury deals a blow to exxonmobil. exxon was found liable for contaminating groundwater with a gasoline additive and was ordered to pay $26 million in damages. the company says it will appeal the decision -- $236 million. shares closed up movedly. spring summer gas demand is expected to hit a 12 year
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low according to a new forecast from the energy information administration. it could bring more relief to drivers. eaa says the average price for a gallon fell to the 3.60 "dallas" week that is 18 cents below this years high set in late february. all right, up next on "money," a new plan could be the tippingpoint to break up the big banks. senator sherrod brown and david vitter joined forces to end too big to fail. the proposal starts a firestorm on wall street. senator vitter joins us next. do you ever have too much money? ♪ . all stations come over to mission a for a final go.
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melissa: big banks. senator sherrod brown and david vitter want the biggest banks to raise a lot more capital, extra 500 billion by some estimates. critics argue this will not just break up the banks but also hamper lending and hurt the economy. legendary analyst dick above
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say -- dick bove says the proposal is anti-american. joining me is senator vitter is. thanks for coming on the show. >> thanks for the invite. melissa: you don't buy the 500 dal billion number, right? >> right. i don't think we have an exact number yet. the concept is not mandatorily breaking up anybody. it is simply having a higher capital requirement for megabanks. three studies in the last nine months have shown that too big to fail is alive and well and it gives megabanks actually market advantage helping them grow even beyond other advantages and dominate the markets. melissa: do you worry about -- >> that means an unfair playing field and it means that the taxpayer is more vulnerable than ever to more bailouts. melissa: big banks raise more capital, the criticism is they have a lot less to lend. they can't lent lend it to people buying houses. can't lend to people working on businesses. it will slow down the economy. how do you respond? >> main street in louisiana
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the megabanks are not main players to begin with. secondly for big deals, banks can work together and put consortiums together and still handle those big, big deals. thirdly you create a buffer when something happens with the economy so that the taxpayer isn't on the hook. i think that gain is well worth the reforms. melissa: okay. i talked to jamie dimon recently. he agrees with you, that too big to fail shouldn't be the way that it is but he thinks there is a way to do it without the system. let me play for you what he said and get your reaction on the other side. >> sure. >> we have a common interest in eliminating too big to fail. i don't think anybody thinks we should have the too big to fail concept. it should like a bankruptcy. we're in favor of that. we and regulators everyone working toward that purpose we need the american public to believe it and our senators and congressman to believe it. they haven't finished all the work. let them finish. if people really believe it is true, break up the big banks and you will figure out why chinese banks dominate american finance.
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melissa: what about at that that, senator? >> well, first of all this is a couple years after dodd-frank. the ultimate test is not me or jamie dimon. it is the market. and the market is clearly speaking that too big to fail is alive and well. melissa: why? what do you see in the market that makes you think that. >> well the bloomberg study that says jamie dimon and other megabanks have an $83 billion subsidy advantage in terms of costs and funds. it is unfair advantage that is allowing them to grow and dominate the banking sector, even more. so yes, jamie dimon wants us to wait five or 10 years. by that time, the only thing that will exist is the pleg ga banks is my fear. melissa: but i don't understand how that cures this problem? because there aren't a lot of people who necessarily believe in that $83 billion figure. a lot of it has to do with federal reserve rates and we have asked mr. dimon about the idea of raising rates. he is very comfortable with that and would help his
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business plan. i'm not sure these are the same things at all. >> well, first of all, to go back to your notion that people don't believe in this figure, there are three independent studies by outside groups that say there's a too big to fail sunsy did i in favor of the megabanks -- subsidy. bloomberg tried to put a number on it and that is where the $83 billion figure comes from. melissa: how does this solve that problem? this is talking about them having more capital. >> a higher capital requirement does two things. first of all it may move and incent the megabanks to restructure into somewhat smaller institutions. secondly it creates a more of a buffer when things go wrong so the taxpayer isn't hit again. melissa: senator, thank you so much for coming on the show. we really appreciate your time. >> thank you so much. melissa: it is a huge issue for our audience. we appreciate your insight very much. >> thanks. melissa: next on "money" how would a breakup of major banks hit you at home? and could alternative
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lenders fill in the void? that is some of what the senator was talking about. two expert are here to explain. >> are taxpayers defying tax laws and making unemployment far worse than it really is? that is a story you will only hear on "money". don't go anywhere. m.o. money straight ahead. ♪ .
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we asked total strangers to watch it for us. thank you so much. i appreciate it.i'll be r. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. melissa: we just heard from senator david vitter on his bipartisan plan to raise bank capital requirements. even if you don't have an account with one of the biggest banks these requirements are going to affect you. it will have a huge impact on lending and economy. where will you be able to turn to get a loan? joining me the ceo of alternative lender and the director of financial regulation studies from the cato institute. mark, i want to go to you first. you were listening during
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the last discussion. what did you think of what the senator had to say? >> obviously i'm fairly sympathetic with the concern. i don't want a debate about numbers. i don't think the proof is ironclad. i think evidence suggests to me that too big to fail, i'm skeptical of the bloomberg number but i believe it's real. i believe there is a subsidy out there but i --. melissa: it is real but is this the right way to solve the problem? >> that is the correct question. i think too big to fail is political problem caused by willingness of regulators in government to throw money at failing banks. i don't think there is anything inherently bad about a large bank. i do think the solution needs to be how do we tie hands of regulators and tie the hands of government? for instance, we have $100 billion treasury called the exchange stabilization fund which was set aside in the '30s to manage the gold dollar parity. there is no reason that treasury needs $100 billion slush fund. they can't be trusted with it. until you tie hands of regulators i think too big to fail is there. melissa: okay.
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>> i'm sympathetic. this is debate we need to have but don't agree with the resolution necessarily. melissa: does this all create an opportunity for you?. >> i think so. if bankers are focused on regulation and no one is focused on innovation. melissa: they have no choice. >> right. the bankers i know 90% of the time is focused on legislation things like dodd-frank and so forth. if you look at small business lending from top banks it is down to a third of prior levels from the credit crisis. companies like on deck alternative lenders have the opportunity to bring a different model to the equation. melissa: what does that mean to the equation if alternative lenders get into the market? is that good because there is more choice? it is dangerous? >> i'm less concerned about the danger. i think choice is a good thing. if you look at u.s. financial markets compared to european financial markets, the fact that our financial markets are so less bank dependent than europe i think is one of the reasons why our economy came through the last several years while doing not great but doing a whole lot better than europe. melissa: yeah. >> because again, if ibm or
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harley-davidson needs to go looking for money they can go to the commercial paper market. they have other sources of funding that companies in europe do not. i think we could try to develop and we should try to develop similar avenues for consumers. whether it is peer-to-peer lending, whether it is crowd funding. i think we need to approach, we need remember finance 101. be diversified not simply in your holdings but your avenues for raising cash. i think a less bank dependent model is one that is safer. melissa: noah, you believe no matter what is going on it will mean less lending from the big banks. if they raise capital requirements they will either break up or they will have less money to lend, that is pretty simple. sound like either way you're sort of betting on something like this happening. >> absolutely. if you're harley-davidson it is one thing when you want to go to the capital markets to borrow mon by by if you're joe's restaurant around the corner, knows banks define small business,
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$25 million revenue or less and if you're a small business with five or less employees, there is not that much avenues behind you. we have a process that takes minutes, not months. that is the equation we offer. melissa: when i look at bigger banks on wall street the government is always steps behind. their business is money. that's what they do for a living. no matter what hurdles they put in front of them it may be irritating and their whole business is making money and they will arbitrage it and make it. >> that is absolutely true. i do want to mention one thing vitter and brown get correct. they walk away from the bassal capital standards. if you look at it today, it cost as bank five times as much capital to make a loan to small business as it does to hold a fannie mae security. melissa: wait, wait. tell us what that means to the average person out there in audience? why should they care about that. >> so what the average person in the audience needs to care about is the way bank capital standards currently set up which the
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brown vitter bill ushs on and ends it is far cheaper for banks to lend to the government, led to fannie and freddie and lend to real estate than it is lend to businesses. it changes that and i think that is positive. melissa: absolutely. let's end on that note. thanks, gentleman. >> thanks very much. melissa: next on "money," how cash-paid workers could sidestep the tax laws and warping unemployment everywhere. governor jerry brown is heading out to bring in a mountain of chinese cash to the golden state. he is not the only one. we'll get details from former california governor gray davis. "piles of money" coming up. ♪ . we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who'sived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.
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♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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the. ♪ melissa: it does not matter what time it is. "money" is always of the move. they are tumbling after hours. because the electrical to 13 profit and revenue. aging may says weak patient admissions and the first quarter are putting a dent in profits. you can see the stocks sinking. paying cash for tips certainly is not new, but more and more businesses are no boldly insisting that tips only be paid in cash. have you seen this? i have. openly admitting that is because of cash bonds to massively coming up as a brazen way to divide taxes. in the most recent stats we have felt, more than sylmar billion
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dollars a year in japan come goes unreported by. they're not reporting it and paying taxes. maybe an employe of the numbers of racine and i really as bad as they look. it is discussing you're only going to year here on "money." with always nice to have you both on the show. what do you speak about this? >> well, i think that we are be wondering, maybe you have an issue. why when -- why when melissa thought about tax cheats and under the table did she decide to come to you and i. beckham it think this is wrong. i think this is wrong. melissa: in does the government and everyone else is not right.
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we all do. but what do you think about this? to use the the amount off3 unreported income is going higher because taxes are higher? wages are stagnant. people of st., pay me in cash whether this tip or a whole job or a service. opinion- >> there is a whole block market that we have known about for 20 years in the employment. there's just no question about it. a lot of them are illegal immigrants to do not have the proper paperwork to get a legal job because of their paid under the table, but it is not just immigrants. you are finding that legal residents who are paid -- these are usually low-skilled jobs that may be paid $10 an hour, you don't have to take the social security of domestic taxes, federal taxes. everyone walks away happy. this is one of the reason a lot of people have advocated a lot of 67 national sales tax because that is one way of actually
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taxing the incumbent. but i know that in the town i live in the pens, but kirsten and drug dealers, so on, they are not paying tax melissa: more and more contract workers. people who are doing here, providing services to are saying that justice will pay me everything in cash. i have talked soon as a national ceo who said that they believe it is not 25%. that is actually lower than that . looking of the books. then update tax and make money
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aside. >> it is all the studies show that it is much higher in europe that is leave estates in england and in the australia and canada. the united states, the numbers actually -- of course, there are to get f2 but they appear to be slightly following . i am less sure why that is commendable and i sure why i believe those numbers, but you're absolutely correct that the numbers are much higher in europe. a lot of things they used to be able to only pay cash, like for example, a cab, you can now pay with credit card. it. melissa: data like that. if you get in there is live that credit card and they have a heart attack and try to sell you the machine is broken. they don't like it at all. i would take this discussion to its logical conclusion that as
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the government continues to raise taxes rates they may not really be getting the revenue that they think they're going to get. the average person finds a way around it out of necessity. you still have to pay the rest of your bills. >> the theorem of taxation that you very well described which is that the incentive to evade taxes is exactly proportional to the tax rate to less so every time he raised tax rates the number of people who try to get around paying that tax rises. and so, by the way, you raised a really important point that the welfare state actually encourages a lot of those off the books payments because a lot of people cannot take a job technically because they lose the benefits. food stamps, an employe insurance. so a lot of those people, we know this committee of working, but they are not working of the books. melissa: they're collecting cash and not paying tax on it. you're both wonderful. the back soon.
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thank you so much. all right. coming upon "money," the answer to our provincial problem. the governor jerry brown is going to china trying to lure investment cash. should some struggling states follow his lead? former california governor jerry davis joins us next. at the end of the day it's all about "money," cash or otherwise. ♪ [ male announcer ] how can power conmption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual fund beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
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♪ melissa: so when it comes to investing money in our country, shouldn't we be depending more and more on china? the controversial issue. someone in this seems like we need the money and they have to spend and the other hand, we often don't share common interests. california governor jerry brown is currently visiting china specifically for investment funds for his state. is that the path we want to keep taking? joining me now, author of the coming collapse of china. glad to have you both on. governor davis, will start with you. what do you think about this? is it a good idea? >> absolutely. investment dollars are investment dollars. they can go anywhere around the world. china has the second-largest
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economy in the world. california has the ninth. so the governor is very interested in seeing investment in california for structure. the biggest a high-speed rail system in the world, 5,000 miles. we are just breaking ground in the central valley. so he is hoping he will attract money to invest in high-speed rail. melissa: what do you think about debt-equity think but governor brown going overseas to court money and sell bonds were california specifically with the chinese are already investing so much in the rest of the country? >> there are a couple of dangerous because the state enterprises that are investing abroad do so often because of beijing's political agenda, not the economic one. and so we just told what beijing exercising influence in california. with california as weird as it is, we may just not notice.
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melissa: governor, and i cannot imagine you will take that sitting down. when we ask you, they're really buying influence? is that a concern? >> i do nothing so because you invest in infrastructure, you cannot take the high-speed rail back with you to china. you are looking for return for the users are of water projects, a $28 billion water projects hoping to break ground and a couple of years. so those kind of investments in other a story about. >> i think that is what they mean by influence, not that there will necessarily take the real battle but that there is a closer, more cinematic relationship. maybe there is an advantage down the road. that might not be in the best interest of their own taxpayers. >> china has embraced western values marketplace embrace decision making, so they have
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changed the economic structure that we help develop with great britain and western europe. we at have to see that as a form of collateral. i think that coexisting with china, finding a place of common ground, attracting money, looking for additional markets for our product below we have a lot of the agricultural products over there, mostly electronics, but mostly agricultural. no wind. so he is serving wine from napa and all the receptions. >> becoming decapolis? >> i don't think so. see all these complaints from american and other multinationals because china is trying to close of the market to them in favor of domestic enterprises. this is a problem when interest interests have dominated politics in the chinese capital. things are moving in the wrong direction. and of think that the chinese have embraced our form of capitalism. they have a mixed economy with the government has a very big role, and it is just not factual to say that they have a
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capitalist economy because they really don't. melissa: what is the next best option? and mean, if we don't go to china in order to raise money, what can we do instead? >> the governor wanted to repay the president, they met in los angeles last fall. so he is taking a delegation to china to do that and to attract investment and promote california products. china does not want to invest money in california, it's a big world, india, europe, brazil and there are other places you can get capital. foreign investment. promoting california infrastructure which have a positive economic state. melissa: at the end of the day it is all about money. text of the you for coming on. we appreciated. >> thank you. >> good to talk to you. melissa: how do you get away with stealing a 2012 emmy it -- atm and other the ground?
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and excavator would probably do the trick. details of for one very bold feet coming up next. you could never have too much . ♪
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melissa: all right, it is time for a little fun with "spare change." today we have a power players, monica crowley in our very own dennis kneale. both are awesome. last week we showed you one creative way to rob an atm. thieves after that actually blown up. this week's task is even more creative. a man in north carolina store and excavator went from a construction site in and use that to pick up an atm nearby. clever. it is definitely killing two birds with one stone. that is that the kind of getaway car that you want to use? >> this is like a scene out of breaking bad. a very creative way about going about it. my only problem is this is that the escalator which was very useful it's like 10 miles.
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>> more than that, the excavator is worth a lot more money than the cash inside the atm. it is like taking a 30,000 dollar gucci bag to go shoplifting for a piggy bank. >> is it easier to spend the cash. >> it is unclear whether they made off with the excavator. so where is the excavator? melissa: the nypd is at it again. a car collided in this accident.
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and the bicyclist was billed $12,000 for damaging the compound. the person was like this is upside down and immoral. everyone is so broke that they will for every opportunity to try to nail you. this poor guy, they were very nice to him, but they didn't apologize. melissa: how do we know that he didn't crash into them? melissa: they didn't ticket him at the time. this is so insulting by the city. this is like you get punched in the face and that is what the
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cops have done here. melissa: have you guys driven in the city? it is crazy. >> i almost got run over today. >> that is just my 2 cents. tonight is president obama is latest star-studded bash. so despite this, justin timberlake and queen latifah are among people performing at this event. the president's private party is streaming live online and on pbs. okay, so taxpayers are picking up the tab.
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>> my daughter was just with my ex-wife in washington dc a few weeks ago. how is it that the white house can afford to have this virus party? melissa: bush invited to the lavish party? >> no, she was not. >> here we go again. it is this 10 command performance in about 4.5 years since he has been president. i think that is exactly the point. this country has been in the great recession and the aftermath of it for four plus years. and he just doesn't care. >> i don't want to worry about a few hundred thousand.
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i'm not going to count that much on the overspend much budget. don't tell me that they are doing this. don't lie to me. you're the president promised them the money, okay, go ahead. melissa: a shocking report says that government is wasting money. i know, i can't believe it. the report highlights 31 areas of duplicate spending, adds up to billions of your taxpayer dollars down the drain. every branch of the armed services developing their very own camouflage patterns. for than 20 agencies running green energy programs. the president says he recognizes the problem and he is going to eliminate it. what do you think? >> i don't believe it for one second. this man has been president for over four years and he has had many opportunities to cut this kind of waste and fraud and abuse from the federal government and he has not done it. why will he start now or

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